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York reels from Norwich Union job cuts shock

BUSINESS and political leaders reacted with dismay to news of the cuts, the latest in a series of bombshells for York’s economy.

Ian Williams, director of policy at the Leeds, York and North Yorkshire Chamber of Commerce, said: “This is a sad day for the economy of the city.”

He said the news was a blow for York as a whole, but added: “It is important not to forget that these are actual real people, losing their jobs.”

The news comes a fortnight after The Press revealed York’s unemployment figures had experienced their biggest jump in a decade, and follows news that Network Rail was to axe nearly 200 jobs in the city. Earlier this week, it emerged York-based rail and plant firm Jarvis was also to cut 450 jobs.

Mr Williams called on Norwich Union to work with staff to help them through the redundancy process.

“We would hope that the company will help individuals look for new work and we will talk with City of York Council to try to find new opportunities.”

He said many of the staff affected had transferable skills, so would be well-placed to find new work.

York MP Hugh Bayley said: “This is awful news for the staff affected.”

He said he had spoken with Norwich Union chief executive Mark Hodges, and urged him to do all he could to minimise the number of compulsory redundancies.

He said: “Good people can get back into the labour market and find alternative jobs, but it’s an incredibly worrying time for those affected, which is why it’s important for the company to do everything it can to reduce the number of compulsory redundancies.”

Selby MP John Grogan said: “The announcement by Norwich Union is the biggest blow to York’s economy since the start of the recession. Nevertheless, the company will remain at the heart of York’s financial sector and it is to be hoped that it will now be able to weather the rest of the downturn without further losses.”

Anne McIntosh, whose Vale of York constituency includes Norwich Union’s Clifton Park base, said: “I am shocked by the scale of the job losses, and disappointed.”

She said it was a “hammer blow for York” and could not have come at a worse time. She vowed to write to Yorkshire Forward, JobCentre Plus, and other economy bodies.

York council calls for urgent talks with firm

URGENT action is needed to help those affected by the Norwich Union job losses, it was claimed last night.

In an emergency debate at City of York Council, politicians of all parties lamented the redundancies, and called for help for those made unemployed.

Liberal Democrat council leader Andrew Waller said before the meeting that it had been a “very bad day” for York.

He later told councillors: “The loss of so many jobs at once is a major blow to the city and we must acknowledge that this will require effort to overcome.”

The council unanimously passed a motion expressing ‘regret’ over Norwich Union’s announcement, and calling on the firm to urgently meet with council chief executive Bill McCarthy, the party leaders, and regional development agency Yorkshire Forward, to find ways to soften the blow for local people.

Labour leader David Scott said: “We must devise an action plan.

“This may not be the last of the big job losses at Norwich Union or elsewhere in the city, and we must be ready to help those who need help.”

Conservative leader Ian Gillies said his daughter was among those at risk of redundancy.

He said: “She has two children, aged four and one, and a mortgage, and everything else you would expect with a young family.

“That situation will be replicated throughout the city and I would urge council to do everything we can to help people.”

Green councillor Dave Taylor said: “We need to take further action to encourage jobs and entrepreneurship in the city.”

Company defends splashing out on high-profile advertising campaign

NORWICH Union bosses today defended the company’s latest high-profile advertising campaign in the wake of the new job losses.

The massive TV, online and print media campaign, featuring celebrities such as Bruce Willis and Ringo Starr, is part of the company’s ongoing rebranding as Aviva.

The ads feature a series of A-list celebrities who have changed their names before becoming internationally recognised, and who ask themselves: “Would this have happened if my name had been. . . ?”

Back in January, Andy Case, national secretary of the Unite union, questioned the decision to spend a significant amount of money on such advertising at a time when so many workers were losing their jobs.

His comments were made after Norwich Union had announced up to 500 job losses at its Monks Cross offices last summer, and then confirmed in October that another 200 posts were to go in the finance section in York.

Speaking in the wake of the latest job cuts, Norwich Union spokesman David Ross said today the advertising campaign made commercial and business sense.

“We are a company which is known around the world as Aviva, and in a handful of places by other names, for example in the UK as Norwich Union,” he said. “There are significant benefits to being known by one name everywhere.”

The company often sponsored sports events, he said. But in many parts of the world, it would bring little benefit for an athlete to have Norwich Union across their chest, because the name would not be recognised outside the UK.

The cost of advertising was always weighed against the benefits it brought, Mr Ross said. As the UK’s largest insurance provider, Norwich Union had always advertised, and would continue to do so – and the cost of the latest advertising campaign was not significantly higher than previous campaigns. “It has been very successful. More than 80 per cent of people we talk to now know that Norwich Union is changing its name to Aviva.”

There was “no connection whatsoever” between the cost of the campaign and the latest job cuts, he said.

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